HC2091 Business Finance
|Assessment Details and Submission Guidelines|
|Unit Title||Business Finance|
|Assessment Title||Group Assignment|
|Purpose of the assessment (with ULO Mapping)||Students are required to form a group from 2 to 5 members to study, undertake research, analyse and conduct academic work within the areas of business finance covered in learning materials Topics 1 to 10 inclusive. The assignment should examine the main issues, including underlying theories, implement performance measures used and explain the firm financial performance. Your group is strongly advised to reference professional websites, journal articles and text books in this assignment (case study).|
|Weight||30 % of the total assessments|
|Word limit||Not more than 2500 words|
|Due Date||Registration of groups and chosen companies: 5 pm Friday, Week 4 Final Submission of Group Assignment: Midnight (23:59 pm.) Sunday, Week 10 Late submission incurs penalties of 5 (five) % of the assessment value per calendar day unless an extension and/or special consideration has been granted by the lecturer prior to the assessment deadline.|
|Submission Guidelines||All work must be submitted on Blackboard by the due date along with a completed Assignment Cover Page. Please make sure that your group member’s name and surname, student ID, subject name, and code and lecture’s name are written on the cover sheet of the submitted assignment.The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. When you submit your assignment electronically, please save the file as ‘Group Assignment- your group name .doc’. You are required to submit the assignment at Group Assignment Final Submission, which is under Group Assignment and Due Dates on Black Board.Reference sources must be cited in the text of the report, and listed appropriately at the end in a reference list using Harvard referencing style. Submitted work should be your original work showing your creativity. Please ensure the self-check for plagiarism to be done before final submission (plagiarism check is not over 30% of similarity, except the cases where the similarity is reflected by using the same format of Holmes’ assignment, the same references or sources of data) in accordance with SafeAssign Student Guide in Black Board. Please note that it takes 48 hours for the self-check report to be available for your viewing.|
This assignment task is a written report and analysis of the financial performance of one selected listed company on the ASX in order to provide financial and investment advice to a wealthy investor. This assignment requires your group to undertake a comprehensive examination of a firm’s financial performance based on update financial statements of the selected company
You’re a group of investment analysts who work for a large investment consulting firm based in Australia. There’s one big institutional investor from overseas that is interested in investing in the Australian market. You’ve been asked to choose a listed company in Australia (in the industry you think will have the most promising future for investment) then evaluate it and give your client financial advice on whether or not she/he should include the share of that company in her/his investment portfolio.
Create your group’s “business name” under which your group will be providing the financial advisory services. Choose one listed company that your group will investigate/analyse for the purposes of possible recommendation to your client. The group should obtain all information about the selected company from this web site: www.asx.com.au.
Obtain a copy of the last two financial years (2016-2017 and 2017-2018) Financial Statements of the chosen company (annual reports are accessible via company websites). Your group can downloaded these documents from the suggested web site using the firm’s code (example, BHP- for BHP Billiton Company, etc.).
|STAGES TO BE COMPLETED|
|1||Description of operation and comparative advantages of the selected company.|
|2||Identify and conduct a trend analyse with the two groups of financial ratios, including profitability and operating efficiency of the selected company|
|3||Analyse monthly share prices movements of the selected company within 2 years, compare the movement with the All-Ord-Index|
|4||Calculate cost of equity for the selected company|
|5||Identify capital structure and calculate WACC of the selected company|
|7||Final Submission of Complete Assignment on Blackboard (Week 10)|
Assignment Structure should be as the following:
(no more than 150 words)
Briefly introduction of you work: the purpose of assignment, the selected company, your findings and structure of your assignment (not more than 200 words)
II. FINANCIAL ANALYSIS OF SELECTED COMPANY
- Description of the company
Prepare a brief description of the selected company, outlining the core activities, competitive advantages, and the market in which it operates within and any factors in the company’s history which you consider help present a “picture” of your chosen company.
2.2. Calculation and analysis of financial ratios
Using financial data obtained from current financial statements of your selected company for the given 2 years to calculate the following ratios and present them in relevant charts or tables. As your client is especially interested in the profitability and operating efficiency of the company, provide analysis on the company performance and justify your opinions using the data:
- Profitability ratios
- Operating efficiency ratios
2. 3.Graphs and comparison of share price movements
Using the information from the ASX website: www.asx.com.au to prepare one or more graph displaying movements in the monthly share prices over the last two years for the chosen company that you are investigating. Data of share price movement of the company should be plotted against All Ordinaries Index.
Providing an analysis to compare the movements in the companies’ share prices to the All Ordinaries Index. For instance, whether your selected company price trend is more or less volatile compared to the index? How closely it is correlated with the All Ordinaries Index, above or below the index?
Do a research to identify the factors that affected the share price movements of the company within 2 years.
2.4. Calculation cost of equity
Based on the data of just paid dividend, current share price and assumption that the company will maintain a constant dividend growth rate of 4% from now on, calculate the cost of equity of your selected company, using constant dividend growth model.
2.5. Identify the capital structure
Identify and discuss
the capital structure of the company
by calculating the
weights of debts
and equity capital (ordinary shares and preferred shares if any).
Assume that the
current required rate
of returns for
|Description of the companies||3 marks|
|Calculation and analysis of financial ratios||5 marks|
|Graphs and comparison of share price movements||5 marks|
|Calculation cost of equity||5 marks|
|Identify the capital structure||5 marks|
|Consulting Report||5 marks|
|Presentation, structure and academic writing||2 marks|
|Total marks||30 marks|
|TOTAL Weight||30 %|
|Assessment Feedback to the Student:|
|Content||Excellent (80%-full marks given)||Very Good (70-79% marks given)||Good (61-69% marks given)||Satisfactory (50-60% marks given)||Unsatisfactory (0-49% marks given)|
|1||Outstanding data and information provided to answer the questions; Independent and deep analysis, based on wide research; Issues and factors are presented and analyzed in a logical interconnectedness; Broad and credible sources of references in proper referencing style.||Very good data and information provided to answer the questions; Very good research conducted; Issues are discussed based on very good research and in relation to each other; Very good references in proper referencing style;||Adequate data and information provided to answer the questions; Reasonable research conducted; Issues are discussed based on sufficient research and in relation to each other; Adequate references in proper referencing style;||Satisfactorily meet the requirements of the assignment but with limited data and information provided to answer the questions; Limited research conducted; Limited references;||No specific data and information provided to answer the questions; No research basis for analysis; Merely relying on secondary data from internet; No reference.|
|2, 4 and 5||Calculation and presentation are demonstrated clearly; Ratios, cost of equity, capital structure and WACC are derived and justified with exemplary analysis that based on current issues and key factors; Implications and explanation are provided convincingly Consistent 2 year analysis and properly justified for inclusions or exclusions.||Very good demonstration of calculations; Ratios, cost of equity, capital structure and WACC are derived with very relevant implications and explanation; Justification and assumptions are very clear; Very consistent 2 year analysis.||Adequate demonstration of calculations; Ratios, cost of equity, capital structure and WACC are derived with relevant implications and explanation; Justification and assumptions are clear; Consistent 2 year analysis.||Calculations are demonstrated; Financial ratios, cost of equity, capital structure and WACC provided but not sufficiently; Providing limited analysis of the ratios; Time analysis is given but limited.||Calculations are not demonstrated for the required financial fundamental ratios, cost of equity, capital structure and WACC Proving no explanation of implications of the ratios and calculations; Single year analysis.|
|3||Providing well established graphs of the chosen company’s share price, which shows obvious price trends||Providing very well constructed graphs of share price of the chosen company||Providing adequate graphs of share price of the chosen company||Providing graphs of share price but may not in relevant time frame;||Providing no graphs of share price of the chosen company|
|in the given time frame Analyzing and comparing the chosen share price with All Ordinaries Index with exceptional good justification and data based analysis Outstanding research is conducted with wide based sources and proper referencing||Indicating clearly the movements of share price with very good comments and explanation Very good analysis comparison with All Ordinaries Index with justification based on reliable data within proper time frame;||Indicating clearly the movements of share price Relevant analysis comparison with All Ordinaries Index with justification based on reliable data within proper time frame; Adequate research conducted with relevant referencing||Analysis and comparison of the share price trend with All Ordinaries Index is provided but not well presented; Research is conducted, but might be with inadequate referencing||No adequate analysis and comparison of price trend No relevant research and referencing|
|Very good research conducted with relevant referencing|
|Presenting a wide ranges of adequate recommendations that exemplarily supported by justification and analysis; Using data and information derived from financial analysis completed in an efficient, analytical and logical manner; Demonstrated a high level of understanding and skills of academic writing by means of criticism, logical argument, and interpretation of data and information.||Presenting very sensible recommendations that properly supported by justification and analysis; Data and information derived from financial analysis are very efficiently used to support the recommendations Demonstrating the ability to present the ideas in outstanding analytical and contextual level||Presenting adequate recommendations that properly supported by justification and analysis; Data and information derived from financial analysis completed are properly used to support the recommendations Demonstrating the ability to present the ideas in proper analytical and contextual level||Addressing limited recommendations; Demonstrating limited justification and analysis of the given recommendations; Demonstrating limited skills of academic writing in terms of structure, presentation, wordings and referencing||Providing no recommendations or inadequate recommendations for investment decisions; No relevant justification using data and information derived from the analysis of financial statements; Failing to meet the requirements of academic writing in terms of structure, presentation, wordings and referencing|